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“The G7 matters, especially if we agree China is our main competitive issue and adversary,” Volpe added after a Canadian Club luncheon panel discussion on navigating the new era of U.S. tariffs. 

As witnessed when Trump dropped 25 per cent tariffs on auto parts compliant with the 2018 Canada-U.S.-Mexico trade agreement known as CUSMA, Washington is realizing that the heavily integrated North American auto industry makes tariffs tricky, said Rob Wildeboer, executive chairman of auto parts giant Martinrea International Inc.

“The U.S. is going to have to realize who are its allies and friends,” he told an audience of business people at the Fairmont Royal York hotel, noting that full tariffs on parts would have shut down the auto industry within a week. 

Trump has maintained tariffs of 25 per cent on Canadian steel and aluminum and on all cars and light trucks not made in the U.S. 

But it may take broader negotiations on an updated CUSMA over “sticking points” for the Americans such on defence spending, Canada’s protected dairy market and the digital services tax to get a better deal, Wildeboer told reporters later. 

Using a baseball analogy, he said “we’re in the fifth inning of a nine-inning game that could be extended.” 

Carney’s office confirmed this week the federal government is in talks with the Trump administration about participating in the American multibillion dollar, next-generation “Golden Dome” missile defence system — with Trump making it clear Canada would have to pay a “fair share.”

During the panel discussion, Volpe and Wildeboer promoted the idea of a Canadian-made vehicle that could reduce Canada’s reliance on U.S.-headquarters automakers such as Ford and General Motors that Trump is urging to move production back onto American soil.

Any such automobile would have to appeal to a particular niche, such as a “city car” with a sustainable production volume of 50,000 to 100,000 vehicles a year, and not compete with best-selling vehicles being produced by other automakers, said Volpe.

He cited Mexico’s push for an affordable $10,000 (U.S.) car for its domestic market and added Vietnam now has a domestic auto producer in Vinfast, which already has dealers in Canada. 

“Let’s do a feasibility study,” Volpe added. “Let’s not predetermine what it is, but we should understand going into it that there are probably five different options in (vehicle) segments that you could go into and configurations that can get you to that sustainable volume level.”

To show an all-Canadian vehicle is possible, the auto parts manufacturers has already developed the Arrow, an electric vehicle built with parts from 60 Canadian suppliers that has been displayed at trade shows around the world to showcase Canuck technology and manufacturing. A second generation Arrow is in the works.ÌýÌý